The Malaysia Digital Economy Corp (MDEC) has announced that it is targeting RM1 billion in investment opportunities by 2025 through its Malaysia Digital Catalytic Programmes (Pemangkin). MDEC focuses on the nine sectors of Digital Tourism, Digital Content, Digital Finance, Digital Health, Digital Cities, Digital Services, Digital Agriculture, Digital Trade, and the Islamic Digital Economy. These sectors were identified based on their potential for exports and having the right ecosystem.
Communications and Digital Minister Fahmi Fadzil believes the digital economy will create 500,000 jobs and contribute 25.5% of the gross domestic product by 2025. He said that the identified sectors would be critical drivers of innovation, competition, and growth, and this will help usher Malaysia’s golden digital decade.
In July 2022, MDEC launched two Pemangkin programs, namely Digital Tourism through DE Rantau and Digital Trade under the Malaysia Digital framework. Mahadhir stated that DE Rantau is expected to inject RM4.8 billion into the economy by 2025 and has received over 2,000 digital nomad applications since Oct 1, 2022. MDEC has onboarded 446 digital nomads and established 844 DE Rantau hubs in Penang, Langkawi, Kuala Lumpur, and Melaka.
Sectors for Investment Opportunities
MDEC aims to invest in nine sectors that have the potential for growth and exports:
MDEC invests in Digital Tourism to attract tourists and showcase Malaysia’s cultural diversity and natural beauty through digital channels.
Digital Content has become increasingly popular in recent years, and MDEC plans to invest in this sector to produce more quality content that can compete globally.
MDEC believes that digital finance can revolutionize the financial sector in Malaysia, and this sector has been identified as having high growth potential.
MDEC invests in Digital Health to improve access to healthcare services and make them more affordable and convenient for Malaysians.
MDEC aims to create smart cities that use technology to improve the quality of life for citizens and promote sustainable living.
Digital Services include e-commerce, logistics, and other services transformed by digital technology. MDEC is investing in this sector to support businesses in adopting digital solutions.
MDEC aims to promote precision agriculture and encourage the adoption of digital technology in farming to increase productivity and reduce waste.
MDEC invests in Digital Trade to support businesses adopting e-commerce and digital trade solutions to expand their reach and compete globally.
Islamic Digital Economy
MDEC is investing in the Islamic Digital Economy to promote the development of digital solutions that comply with Shariah law and cater to the needs of Muslim consumers worldwide. This sector includes Islamic finance, halal products and services, and Islamic lifestyle.
Investment Opportunities and Allocations
MDEC has allocated a total of RM192.9 million to the nine sectors under the budget for the digital economy through MDEC from 2023 to 2025. The investments comprise RM143 million in public investment, RM45 million from tech enablers, and RM4.9 million in grants. Other investment opportunities will come from private sector-led investments and collaborations.
The highest allocation is for the Digital Trade sector, with RM35 million, followed by Digital Agriculture (RM30 million), Digital Content (RM25 million), and Digital Services (RM7 million). Allocations for Digital Health and Digital Cities are similar at RM16 million, while for both Digital Finance and Islamic Digital Finance, RM1.8 million is allocated.
MDEC aims to attract more private sector-led investments and collaborations in the future. The government’s support for the digital economy and investment in digital infrastructure, education, and skills development will create a conducive environment for businesses and individuals to thrive.
MDEC’s aim to target RM1 billion in investment opportunities by 2025 through its Malaysia Digital Catalytic Programmes is a positive sign for Malaysia’s digital economy. The nine sectors that MDEC aims to focus on have been identified based on their potential for growth and exports. The government’s investment in the digital economy and support for businesses and individuals to adopt digital solutions will create a conducive environment for the digital economy to thrive in Malaysia.
- What are the nine sectors that MDEC aims to invest in? MDEC aims to invest in Digital Tourism, Digital Content, Digital Finance, Digital Health, Digital Cities, Digital Services, Digital Agriculture, Digital Trade, and the Islamic Digital Economy.
- How much has the government invested in the digital economy through MDEC from 2023 to 2025? The government has provided RM192.9 million in total investment to the sectors under the budget for the digital economy through MDEC from 2023 to 2025.
- What is the highest allocation for investment among the nine sectors? The highest share is for the Digital Trade sector, with RM35 million.
- What is the expected contribution of the digital economy to Malaysia’s GDP by 2025? The digital economy will contribute 25.5% of the gross domestic product by 2025.
- What is the purpose of MDEC’s Malaysia Digital Catalytic Programmes? MDEC’s Malaysia Digital Catalytic Programmes aim to target RM1 billion in investment opportunities from the nine identified sectors by 2025.